Preserving The Sacred Ponzi Scheme

The mindset in this letter shows just how much of an uphill battle any efforts to tackle out-of-control government spending will be. If the belief that Medicare and Social Security are “sacred trusts” that cannot be touched prevails (an idea firmly held by Washington power brokers), it will be an economic sledgehammer to future generations. A recent Cato study shows Social Security has promised the current generation of retirees benefits that are $65 trillion over what is expected to be paid in future payroll taxes, with only $2.9 trillion available in trust funds. Per the study, “today’s Social Security and Medicare payroll taxes would have to be more than doubled to resolve it” or require a near-doubling of income taxes on the broadest tax base.

Sorry, I find nothing “sacred” about bankrupting future generations to preserve a Ponzi scheme. Irresponsible promises like these should have never been made. Whether true reform is made remains to be seen.